This report profiles India's food and beverage industry, discussing market trends through 2013-14 and outlook for 2014 and beyond. The report also highlights leading players in the sector including Britannia Industries Ltd, Nestle India Ltd, and Jubilant Foodworks Ltd.

Sales growth in the food and beverage industry witnessed a five-year low in FY14. Overall economic slowdown and inflation led to a contraction in consumer demand during the fiscal year. However, decline in inflation post-1QFY15 and better economic growth is expected to result in an improvement in sales figures and profitability for food and beverage companies in coming fiscal years.

Despite the tough conditions that prevailed in FY14, the outlook for Indian food and beverage is stable because of growing sales, reforms in retail sector and increasing urbanization. The ever increasing middle class backed by rising per capita income will further act as a growth driver for this sector in the years to come.

Key Points:

o India's current regulation and policies allow 100% foreign direct investments under the automatic route in the food processing and allied sectors. As of March 2013, the sector accounted for around 3.9% of the country's total FDI inflows.

o Both the inflation indicators - Wholesale Price Index (WPI) and Consumer Price Index (CPI) - were above the comfort zones of RBI in most part of FY14, suppressing the discretionary income of Indian households. WPI inflation declined considerably in 2QFY15, falling to a five-year low of 3.7%.

o Higher policy rates led to a lower credit off-take, which transpired into a full blown industrial slowdown affecting almost all sectors of the economy. As a result, the index of industrial production (IIP) saw a decline of 0.1% in FY14. The food products and beverage manufacturing industry was also affected, declining by 1%.

o IIP saw signs of improvement in 5MFY15 with overall index growing by 2.8% y/y, while the index for food products and beverages grew by 6.7% y/y during the same period.

Table Of Contents

India Food and Beverage Industry Report - 20141. Industry Profile

1.1 Sector overview

1.2 Sector size

1.3 Competitive landscape

1.4 Environmental scanning

2. Market Trends and Outlook

2.1 Key economic indicators-India

2.2 Food products segment

2.2.1 Grain mill products

2.2.2 Vegetable and fruit products

2.2.3 Milk and dairy products

2.2.4 Meat, marine and poultry products

2.3 Beverages segment

2.3.1 Non-alcoholic beverages

2.3.2 Alcoholic beverages

2.4 Food services and retail segment

2.5 Market outlook

3. Leading Players and Comparative Matrix

3.1 Leading players

3.1.1 Britannia Industries Limited (BIL)

3.1.2 Nestle India Limited (NIL)

3.1.3 Jubilant Foodworks Limited (JFL)

3.2 Comparative matrix

3.3 SWOT analysis

4. Tables and Charts

Table 1: FDI inflows in food processing sector

Table 2: Policy initiatives taken by the Ministry of Food Processing Industries

Table 3: Key financial ratios of the leading players

Chart 1: Food production index

Chart 2: Breakup of Indian food and beverage sector by segments

Chart 3: Manpower employed by various industries

Chart 4: Results of Indian general elections 2014

Chart 5: Current account deficit and fiscal deficit

Chart 6: Changing demographics of India

Chart 7: Quarterly GDP growth rate-India

Chart 8: Average Monthly USD to INR Exchange Rate

Chart 9: Inflation-India

Chart 10: Repo rate

Chart 11: Contribution of industries in IIP by weights

Chart 12: Y/Y change in Index of industrial production

Chart 13: Breakdown of food products segment by output

Chart 14: Annual biscuit production in India-Organized sector

Chart 15: Market share by sales value-Instant noodles

Chart 14: Market share by sales value- Confectionary

Chart 17: Annual fluid milk production in India

Chart 18: Annual butter production in India

Chart 19: Annual buffalo beef exports from India

Chart 20: Estimated market size of the beverage market in India

Chart 21: Non-alcoholic beverage market breakup

Chart 22: Share of leading players in instant coffee market

Chart 23: Major soft drink brands in India with market share

Chart 24: Fruit juice brands with their market share

Chart 25: Market share by sales value-Health drinks

Chart 26: Major bottled water brands in India with market share

Chart 27: Share of categories in Indian alcoholic beverage market by volume

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